Capital Markets – 2016 Financial Review

Certain prior period information has been reclassified to conform to the presentation adopted in the current year. See “External reporting changes” for additional details.

As a leading capital markets franchise in Canada and banking partner to clients in core Canadian industries in the rest of the world, Capital Markets acted as:

Financial advisor to Suncor Energy Inc. on its $7 billion acquisition of Canadian Oil Sands Limited, as well as joint bookrunner on Suncor’s $2.9 billion bought common share offering, one of the largest-ever equity bought deals in Canada;

Financial advisor, financing co-underwriter and lead agent on related foreign exchange to Lowe’s Companies Inc. on its $3.2 billion acquisition of RONA Inc.;

Financial advisor, lead left bookrunner on $525 million of subscription receipts, sole lead arranger, underwriter and bookrunner on $1.8 billion of credit facilities and sole foreign exchange provider supporting Stantec’s acquisition of MWH Global Inc.;

Lead left bookrunner on a $1 billion convertible debenture offering and administrative agent and joint lead arranger on a US$1.6 billion bridge facility for Algonquin Power & Utilities Corp. in support of its acquisition of Empire District Electric Company; and

Capital markets awards and recognition

Canada Derivatives House Of The Year – 2016 GlobalCapital Americas Derivatives Awards

The leader in Canadian Equity Trading – #1 in volume, value and number of trades – TSX and ATS Market Share report 2009 – present (as provided
by IRESS Market Technology as at October 31, 2016)

In 2016, CIBC economics and equity research analysts held Top 3 rankings in several sectors as recognized by Brendan Wood International and Thomson Reuters. Research sectors included – Economics, Agriculture, Auto Components, Banks and Diversified Financials, Chemicals & Fertilizers,
Energy Equipment Services, Insurance, REITS & Hospitalities, Telecom and Utilities

2016 Canadian Hedge Fund Award for Top Canadian Prime Broker – Alternative IQ

The leading IPO underwriter in Canada – Bloomberg as at September 30, 2016

North American M&A Deal of the Year: Indiana Toll Road Acquisition 2016 – IJGlobal Americas Deals of the Year Awards

Ranked #1 for number of deals led in Canadian Loan Syndication Thomson Reuters and Bloomberg Lead Arranger League Tables, January-September
2016

Revenue – Global markets(1B)

($ millions)

Revenue – Corporate and
investment banking(1B)

($ millions)

(1B)

Certain prior period information has been reclassified to conform to the presentation adopted in the current year. See “External reporting changes” for additional details.

Results(1C)

Table of Results for Capital Markets for the last three years from 2016 to 2014.

$ millions, for the year ended October 31

2016

2015(2C)

2014(2C)

Revenue

Global markets

$

1,640

$

1,353

$

991

Corporate and investment banking

1,259

1,273

1,294

Other

16

(6)

111

Total revenue(3C)

2,915

2,620

2,396

Provision for credit losses

153

54

43

Non-interest expenses

1,398

1,332

1,225

Income before income taxes

1,364

1,234

1,128

Income taxes(3C)

288

277

259

Net income

$

1,076

$

957

$

869

Net income attributable to:

Equity shareholders (a)

$

1,076

$

957

$

869

Efficiency ratio

47.9

%

50.8

%

51.1

%

Return on equity(4C)

30.6

%

35.8

%

37.1

%

Charge for economic capital(4C) (b)

$

(341)

$

(320)

$

(288)

Economic profit(4C) (a+b)

$

735

$

637

$

581

Average assets ($ billions)

$

162.8

$

141.8

$

121.9

Full-time equivalent employees

1,324

1,342

1,306

(1C)

For additional segmented information, see Note 28 to the consolidated financial statements.

(2C)

Certain information has been reclassified to conform to the presentation adopted in the current year. See “External reporting changes” for additional details.

(3C)

Revenue and income taxes are reported on a TEB basis. Accordingly, revenue and income taxes include a TEB adjustment of $474 million (2015: $482 million; 2014: $421 million).
The equivalent amounts are offset in the revenue and income taxes of Corporate and Other.

(4C)

For additional information, see the “Non-GAAP measures” section.

Financial overview

Net income was up $119 million or 12% from 2015, primarily due to higher revenue, partially offset by a higher provision for credit losses, and higher
non-interest expenses.

Revenue

Revenue was up $295 million or 11% from 2015.

Global markets revenue was up $287 million or 21%, primarily due to higher interest rate and foreign exchange trading revenue, and higher revenue from
global markets financing activity.

Corporate and investment banking revenue was down $14 million or 1%, primarily due to lower investment portfolio gains, as the prior year included a
gain on sale of an investment in our merchant banking portfolio, shown as an item of note, and lower revenue from U.S. real estate finance. This decrease
was partially offset by higher corporate banking revenue and higher equity issuance activity.

Other revenue was up $22 million, primarily due to a gain on the sale of an AFS equity investment in our structured credit run-off business, partially offset
by higher mark-to-market losses on corporate loan hedges.

Provision for credit losses

Provision for credit losses was up $99 million from 2015, primarily due to higher losses in the oil and gas sector and losses in our exited European
leveraged finance portfolio, shown as an item of note, partially offset by lower losses in our U.S. real estate finance portfolio.

Non-interest expenses

Non-interest expenses were up $66 million or 5% from 2015, primarily due to higher employee-related costs and higher spending on strategic initiatives.

Income taxes

Income taxes were up $11 million or 4% from 2015, primarily due to higher income.

Average assets

Average assets were up $21 billion or 15% from 2015, primarily due to higher global markets financing activity, higher interest rate trading inventory, and
higher loan balances in corporate banking and U.S. real estate finance.